The Argentine Republic and the Kingdom of Spain, hereinafter referred to as "the Parties",
Desiring to intensify economic cooperation for the economic benefit of both countries,
Intending to create favourable conditions for investments made by investors of either State in the territory of the other State,
Recognizing that the promotion and protection of investments in accordance with this Agreement will encourage initiatives in this field,
Have agreed as follows:
The content and scope of the rights corresponding to the various categories of assets shall be determined by the laws and regulations of the Party in whose territory the investment is situated.
No modification in the legal forum in which assets and capital have been invested or reinvested shall affect their status as investments in accordance with this Agreement.
The term "territory" shall mean the land territory of each Party, as well as the exclusive economic zone and the continental shelf beyond the limits of the territorial sea of each Party over which it has or may have, in accordance with international law, jurisdiction and sovereign rights for the purposes of prospection, exploration and conservation of natural resources.
Each Party shall endeavour to grant the necessary permits in connection with such investments and, within the framework of its legislation, shall permit the execution of manufacturing licensing contracts and of technical, commercial, financial or administrative assistance and shall grant the requisite permits in connection with the activities of consultants or experts engaged by investors of the other Party.
Nationalization, expropriation or any other measure having similar characteristics or effects that might be adopted by the authorities of one Party against investments made in its territory by investors of the other Party shall be effected only in the public interest, in accordance with the law, and shall in no case be discriminatory. The Party adopting such measures shall pay the investor or his assignee appropriate compensation, without undue delay and in freely convertible currency.
Each Party shall grant to investors of the other Party, in respect of investments made in its territory, the possibility of transferring freely income, earnings and other payments relating to those investments and in particular, but not exclusively, the following:
Where either Party has provided a financial guarantee against non-commercial risks in respect of an investment made by an investor of that Party in the territory of the other Party, the latter Party shall agree to application of the principle of subrogation of the first Party to the economic rights of the investor, but not to the real rights from the moment when the first Party makes a payment against the guarantee which it has provided.
As a consequence of such subrogation, the first Party shall be the direct beneficiary of any payment of compensation to which the original investor might be entitled. In no case may a subrogation apply to rights of ownership, use, enjoyment or any other real right deriving from ownership of the investment without first obtaining the relevant authorizations required under the legislation on foreign investment in force in the Party in which the investment was made.
The arbitral tribunal shall be constituted as follows: each Party shall appoint an arbitrator and these two arbitrators shall nominate a national of a third State as chairman. The arbitrators shall be appointed within three months and the chairman within five months from the date on which either Party informed the other Party of its intention to submit the dispute to an arbitral tribunal.
If one Party has not appointed its arbitrator within the period specified, the other Party may request the President of the International Court of Justice to make the necessary appointments. If the President of the Court is a national of either Party or is otherwise prevented from acting, the appointments shall be made by the Vice-President of the Court. If the Vice-President is also a national of either Party, or is also prevented from acting, the appointment shall be made by the member of the Court next in seniority who is not a national of either Party.
The arbitral tribunal shall issue its ruling in accordance with the provisions of this Agreement, with those of other agreements existing between the Parties, with the laws in force in the country in which the investments were made and with the universally recognized principles of international law.
This Agreement shall enter into force on the day on which the two Governments notify each other that their respective constitutional formalities for the entry into force of international agreements have been completed. It shall remain in force for an initial period of 10 years and shall be tacitly renewed for consecutive periods of two years.
With the signing of the Agreement between the Argentine Republic and the Kingdom of Spain on the reciprocal promotion and protection of investments, the following provisions have also been agreed:
The interpretation of articles IV and VII of the Agreement shall be that the Parties consider that the application of most-favoured-nation treatment shall not extend to the specific treatment reserved by either Party for foreign investors in respect of investments made in the context of concessionary funding provided for in a bilateral agreement concluded by that Party with the country to which the aforementioned investors belong, such as the Treaty for the establishment of a special associative relationship between Argentina and Italy of 10 December 1987 and the General Treaty of cooperation and friendship between Spain and Argentina of 3 June 1988.
The Party in whose territory the investment is made shall facilitate access to the official currency exchange market by the investor of the other Party or the company in which he has invested, on a non-discriminatory basis and subject to the same terms as local companies in which no foreign investment has been made, in order to obtain the necessary currency to make the transfers provided for in article VI.
The Parties undertake to facilitate the necessary procedures to enable transfers to be effected without undue delay or restrictions. Specifically, no more than six months shall elapse between the date on which the investor duly submits the requests required to make the transfer and the date on which the transfer is actually made. Both Parties therefore undertake to comply with the necessary formalities for both the purchase of foreign currency and its actual transfer abroad within the time-limit specified above.
Each Party reserves the right, in the event of exceptional balance-of payments difficulties, to set limits on transfers, in a fair and non-discriminatory manner and in conformity with its international obligations. Such limits may not exceed, for each investor, a period of 36 months and shall include the possibility of making each transfer in a number of instalments, over a period not exceeding 18 months.
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